The Indian butter catfish, Ompok bimaculatus (Bloch, 1794), is a high-value catfish that has gained immense consumer preference in South-East Asia. However, information on the nutritional requirements of this species is scanty. Hence, an experiment was conducted to evaluate the effects of varying dietary lipid levels on growth, body composition, and activities of digestive and metabolic enzymes in larvae. Three isonitrogenous (40% crude protein) diets were formulated by supplementing fish and vegetable oil (1:1) at 4.5% (D1), 7% (D2), and 9.5% (D3) levels (containing crude lipid 5.7%, 8.0%, and 10.45%, respectively in diets D1–D3) to a fish meal- and oilcake-based formulated diet. Experimental diets were fed to butter catfish larvae (0.15 ± 0.01 g) in triplicate groups for a period of 42 days. Proximate compositions of the experimental diets, as well as fish carcass, were analyzed using standard procedures (AOAC 2005). Digestive and metabolic enzyme activities were analyzed at the completion of the experiment by standard methodology. Butter catfish larvae fed the diet D2 (8% crude lipid) resulted in the best performance in terms of weight gain (final weight 1.40 ± 0.07 g), net weight gain (1.31 ± 0.06 g), specific growth rate (5.50 ± 0.05% · day−1), and protein efficiency ratio (2.39 ± 0.17). The highest lipid deposition (2.90 ± 0.12%) in the carcass was also recorded in fish reared on diet D2. The final weight, net weight gain, protein efficiency ratio, and specific growth rate were significantly (P < 0.05) higher in D2 having 8% lipid. Moisture and lipid contents of the whole body were significantly (P < 0.05) higher in larvae fed diet D2. Amylase activity in fish significantly (P < 0.05) decreased with increasing dietary lipid levels. The maximum alkaline protease, pepsin, and lipase activities were noticed in the larvae fed diet D2. Progressive decrease in liver glucose-6-phosphate dehydrogenase activities and significant increase (P < 0.05) in the activities of neoglucogenic enzymes (glucose-6-phosphatase and fructose-1,6-bis phosphatase) were noticed with an increase in dietary lipid levels. Significantly lower (P < 0.05) activities of LDH, ALT, and AST were recorded in the group fed diet D2. Results of the study indicated that 8% crude lipid in the diet could assure optimum growth and survival of butter catfish larvae during early development. An appraisal on growth, body composition, and digestive as well as metabolic function in the butter catfish larvae recorded in the study might provide some important information to consider application of formulated diets for the larviculture of Ompok bimaculatus.